In recent years, the quality of private label products and their market shares have grown to such an extent that most consumer goods manufacturers, brand leaders included, can not afford to ignore them. Private labels are, however, not just another generic competitor. The retailer that sells them is also an important account, and the issue includes the question: to produce private label or not? Several authors have recently suggested a number of effective strategies for leading national brand manufacturers against private labels. However, the empirical evidence for the strategies identified is scarce. Using a sample of 101 Dutch national brand manufacturers, we get a better understanding of the sets of strategies companies use. Using an inductive approach, we find four dominant profiles that are linked to performance and are discussed.
For retailer managers, it is crucial to understand the relationships between customers' store attribute evaluations, satisfaction, and share of wallet as well as how these relationships change over time depending on the business cycle. This study investigates this complex relationship using an extensive dataset for all grocery chains in the Netherlands over the period 2009-2012. Our findings indicate that retailers should not overemphasize the importance of a favorable price image in times of low consumer confidence. Instead, our study shows that the relationship between service attributes and customer satisfaction is stronger in periods with low consumer confidence.
The authors thank the collaborative research partner for sharing insights and providing the opportunity to conduct this study. The authors acknowledge Bas Donkers, Marnik Dekimpe, Peter Leeflang, and Koen Pauwels for their helpful comments on previous versions of this article. Furthermore, they are indebted to the three anonymous JMR reviewers for their constructive comments.
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